The trust gets 80 per cent of its income from primary care trusts, which decide their own level of investment.

Martin Roe, director of finance and deputy chief executive, said while Tameside had been overpaying by £1M, Rochdale had been underpaying by the same amount.

Speaking at the trust's annual meeting, he said: "There will be increased investment in Rochdale."

Rochdale PCT spent 7.5 per cent of its total budget on mental health services.In 2005, it spent £112.90 per head on mental health care compared to the national average of £149.90.

Keith Surgeon, chief executive of the Heywood and Middleton Primary Care Trust (PCT), said pumping more money into the trust would not resolve its problem. He admitted Pennine Care was underfunded, but said reasons for financial deficit in any trust were complex.

He said: "The situation in Rochdale is not good and hasn't been for a long time with regards to mental health service. But, over the last three years, the two PCTs (Rochdale and Heywood and Middleton) have increased their expenditure by 16 per cent, then 12 per cent and finally 10 per cent."

Mr Surgeon said: "An investment of an extra £1M in mental health means £1M not going elsewhere. The slice of cake going to mental health services is too small, but a bigger slice will mean difficult decisions in other areas."